For the 2014-2015 school year, the average yearly budget for a public, in-state school reached $23,400, including tuition, fees, on-campus housing, books, transportation and other expenses according to The College Board’s Annual Survey of Colleges. For public colleges out-of-state, the cost increases by nearly $14,000. The equivalent average cost of private colleges and universities is double the amount of the in-state public schools. The 2015-2016 college cost will be available shortly from The College Board.
College is a significant multi-year expense, and funding strategies are often much more complicated than simply solving for the appropriate savings amount and setting up contributions to fulfill the future college cost. Parents are faced with finding a balance between supporting children’s education and their own goals for retirement and overall financial security.
CASE STUDY: Clients with fast approaching college expenses for two children. They want to know how much of the children’s college cost they can pay for while keeping their plans for retirement on track.
For clients that are planning for college costs eighteen years from now, or have a child who is eighteen and just starting college, knowing how much they can afford to contribute to the expense of college is crucial. Advisors can help clients determine the appropriate amount the family can contribute to college savings while keeping their overall financial security and goals for retirement on track. Financial advisors can ease the large burden of college funding for clients with professional planning and guidance.
Plan to Ease Parents’ Top Concern: College Funding